Apple has released its new firmware update, which alters unlocked iPhones

Those rushing in droves to unlock the Apple iPhone may be in for a surprise when they try out Apple's newest firmware update; version 1.1.1.

Apple released a statement earlier this week that, "Apple has discovered that many of the unauthorized iPhone unlocking
programs available on the Internet cause irreparable damage to the
iPhone's software, which will likely result in the modified iPhone
becoming permanently inoperable when a future Apple-supplied iPhone
software update is installed."

Phil Schiller, Apple's senior vice president of
worldwide product marketing, claims, "This has nothing to do with proactively disabling a phone that is
unlocked or hacked. It's unfortunate
that some of these programs have caused damage to the iPhone software,
but Apple cannot be responsible for ... those consequences."

It turns out that the reports are true -- somewhat. Apple released its controversial iPhone firmware update yesterday. Among its new official features:

• iTunes Wi-Fi Music Store
• Louder speakerphone and receiver volume
• Home Button double-click shortcut to phone favorites of music controls
• Space bar double-tap shortcut to intelligently insert period and space
• Mail attachments are viewable in portrait and landscape
• Stocks and cities in Stocks and Weather can be re-ordered
• Apple Bluetooth Headset battery status in the Status Bar
• Support for TV Out
• Preference to turn off EDGE/GPRS when roaming internationally
• New Passcode lock time intervals
• Adjustable alert volume

iPhone unlocking has become very widespread, thanks to two key software offerings: iPhoneSimfree and anySIM. These programs "unlock" the iPhone and allow it to work on T-Mobile's compatible EDGE network. In foreign countries, unlocking the phone's SIM card to other networks is the only way to currently enjoy phone service outside the U.S. AT&T only provides service within the U.S. England, France, and Germany are all getting dedicated providers in November, but until then or in other countries, there is no way to use the iPhone without unlocking it.

It is unknown how many unlocked users there are but with over a million iPhones in the wild there is likely a substantial number. The iPhoneDev group, based on the number of people who downloaded their
software, thinks there are "several hundred thousand" users of unlocked iPhones-- a figure Piper
Jaffray's Gene Munster takes as a rough upper bound. "Even if the
average hacker downloads the software twice, that's still over 100,000
hacked," he says. "The story is far from over."

Firmware update 1.1.1 works perfectly on normal iPhones, with no reported issues, as expected.

The update also does not destroy unlocked iPhones, contrary to what Apple indicated might happen.

It does however render them useless, unless you are willing to get an AT&T contract. Installer.app and any other unlocking associated software is rendered useless by the update, as well. It is still in the stored on the phone, but the application will no longer appear on the screen. Further, the update puts unlocked iPhones into the Activation screen that awaited normal users when they first purchased their phone.

At the activation screen, users can try to activate using a valid AT&T activation card and iTunes. The update appears to render iPhones unlocked by certain modification programs unable to activate at all, according to early reports. For these applications, users replaced the unlocked SIM card with a fresh one to no avail.

The program IPhoneSimfree allows iPhone activation with the AT&T card and iTunes, according to a statement from the software providers. After activation, the iPhone will operate as normal, but will be locked to the network.

It has not yet been fully tested whether the phone can subsequently be unlocked by any means without at least partially crippling the device. Part of unlocking software's operation relies on updating the seczone region of the phone's memory. The firmware update apparently clears any updated values and restores the memory to its default configuration, relocking the phone to the AT&T network. Further, the firmware update may have additional changes to help prevent this zone of the memory from being accessed.

iPhone users on 3rd-party networks should not install the 1.1.1 update if they wish to continue to use a non-authorized network. The update is voluntary, so there is nothing stopping you from not doing so.

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This article is over a month old, voting and posting comments is disabled

quote: The person who altered the firmware already technically "broke" the phone by Apple's warranty standards

How so? All that apple says is their warranty is void if you modify it, this doesn't mean Apple is free from laws not pertaining to warranty. It doesn't matter what apples writes in their agreement, technically they are not suppose to be able to damage a product you bought intentionally, regardless of how you modify it. If the update breaking things was a side effect of the update than of course they can get away with it, but we all know this probably was not the case

I really don't see what all the fuss is though, just don't update your phones. Apple does not have to support your unlocked phones in any way, that should have been made clear to your in the first place when you unlocked your phone.